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Vermont Considering Tax Hikes for Diesel and Gasoline

As lawmakers in Vermont look to raise money for road and other transportation projects, trucking could get dragged into the mix with talk of a possible diesel tax hike.

One proposal in the state legislature calls for increasing the diesel tax by 2 cents per gallon this year followed by a 2 cents hike in 2014. Proponents say it would allow them to throttle back on a gasoline tax hike that’s also being considered.

Lobbyists for the Vermont Truck and Bus Association say that tax on diesel in the state is already higher than gasoline and diesel prices are way ahead of it is well.

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Another plan would change how the state calculates its fuel taxes, going from a per gallon tax to a sales tax based on the rate of inflation. If passed and signed into law, by the time it’s fully implemented in 2015, it would result in around a 7 cents per gallon tax hike, based on current fuel prices.

Critics have raise concern that if fuel taxes do increase, they need to make sure the proceeds go for transportation infrastructure projects and are not diverted for other uses.